December 2, 2023

Image result for What classifies as a false claims act?

When most people think of the U.S. Civil War, they remember a war of citizens fighting citizens—one that took a heavy toll on the society at the time by causing the death of almost 2% of the population. But there were also serious economic damages done to the country, damages that mainly were the result of fraud.

Businesses charged the government for services they didn’t provide, leaving the taxpayer to foot the bill. The extreme levels of fraud lead the government to pass the False Claims Act in 1863.

Today, the False Claims Act (FCA) is known mostly for its role in helping whistleblowers expose companies who are defrauding the government.

Most of the time, these whistleblowers are employees of the company who is committing fraud, so it is important for them to have protection against retaliation.

The False Claims Act—What it Means for Everyday People

There are a few things you should know about the FCA, including how it works and what constitutes a claim.

How it Works

There are a variety of consequences that can be imposed by the FCA. The most important are:

  • Civil penalties that can go up to $10,000 and which are adjusted for inflation
  • Up to 3X the amount defrauded in damages ($500,000 defrauded could lead to $1,500,000 in damages)

What Classifies as an FCA?

  • Billing the government for services or goods never delivered
  • Double billing
  • Not notifying when the government overpays
  • Falsely certifying a contract

Are You A Whistleblower with Knowledge of a Company Defrauding the Government?

It can be difficult to be sure if the knowledge you have constitutes as an FCA. We are here to help you determine your options. Please contact us today to learn more about our services for whistleblowers. We may be able to help you set things right and get compensation in the process.